Wall Street Journal (August 8)
The sky is not falling according to Burton G. Malkiel, a former Princeton professor and author of “A Random Walk Down Wall Street.” In the U.S., “the headwinds restraining the economy are many” and further complications arise because “Europe has not really fixed its economic problems.” Still, Malkiel doesn’t believe this is a good time to sell. Valuations are likely to climb in the future. Stocks are currently cheap in terms of P/E ratios and the results of many U.S. corporations are driven less by what happens in Japan, Europe and the U.S., than by sales in emerging markets. “My advice for investors is to stay the course.”
Financial Times (January 25)
Inflation in India is taking a toll on the stock market and causing foreign investors to rethink their exposure. Who would have guessed “that a rise in the price of onions would put a brake on the stellar growth of India’s stock market”? To battle food price inflation, the Reserve Bank of India has raised interest rates seven times during the past year. As a result, investors are now worried that “high inflation in India could threaten its economy.”
Economist (December 29)
America’s economy is looking better, but investors should “proceed with caution.” While forecasting America’s economy will grow by nearly 4% in 2011, the Economist points out “share prices are meant to be based on more than just the next 12 months’ earnings, and the medium term is as treacherous as ever; perhaps more so.” Chief among the concerns is “the American government’s inability to sort out its finances in a credible way.”
Tags: Economic oulook, Government debt, Investors, U.S.
The Economist (May 20, 2010)
Despite a massive $950 billion rescue plan, investors “remain nervous” about the euro. More worryingly, European leaders remain confused. Major changes are necessary to save the euro: “How sad that most euro-zone governments still do not seem to get it; how pathetic that they cover their ignorance by blaming hedge-fund managers in London.”
Despite a massive $950 billion rescue plan, investors “remain nervous” about the euro. More worryingly, European leaders remain confused. Major changes are necessary to save the euro: “How sad that most euro-zone governments still do not seem to get it; how pathetic that they cover their ignorance by blaming hedge-fund managers in London.”
Tags: euro, Hedge funds, Investors